Posts tagged “Taxation”

There’s been much talking about how “unequal” things are for “ordinary” people. The President, and the President’s political party, started the kerfluffle during the 2012 elections. But recently, as the Affordable Care Act continues to prove it’s about anything but either affordability or health care and Mr. Obama’s foreign policy initiatives crater; as congressional democrats find themselves unable to find a positive message to coalesce around and as the economy continues it’s non-recovery recovery, the talk of “inequality” from both leftist politicians and the media has reached a new crescendo.

The left went agog with the election of Bill deBlasio in New York City, who campaigned on a theme of ending economic inequality in the nation’s largest city. Leftists, and their allies in the democrat party, believe that by highlighting the basic reality of capitalism they have a permanent winning issue. But other than Sen. Elizabeth Warren (D-MA), no democrat has attempted to lend any sort of intellectual credence to the argument that rich people want the rest of us to be poor. Not even the leading leftist economists, Paul Krugman and Robert Reich included, have been able to demonstrate how that works, exactly. As for Mrs. Warren, the reality is that once you dive into her work, you soon discover that she is perhaps the most crass political animal to come out of her party since Bill Clinton. While she mouths the platitudes, she actually doesn’t have a single policy idea to “make capitalism fairer for the typical American.”

The French Revolution, founded on the ideal of “Liberty, Equality, Fraternity” quickly devolved into the bloodbath known as the Reign of Terror. Some people were definitely more equal than others, as the French sent over 17,000 of their countrymen to have their heads liberated via the guillotine.

Anyway, we already know that Mrs. Warren is more a symptom than an exemplar of her party’s cynical politics. While they’ve all seemingly abandoned the DLC positions embraced by the Clinton administration, the reality is most haven’t . That includes Mrs Warren, Mr. Krugman and Mr. Reich. But there is a very large, core group of true believers who unabashedly embrace the culture of class warfare. If you’re one of those, feel free to stop trolling now. Nothing I’m about to write will change your closed minds; feel free to re-read Das Kapital and ignore such trivial matters as world history and human nature. But if you are one of those people who gets queasy about the type of all-out class warfare that the President and his minions, in seeking electoral glory are pushing us towards, I recommend you read on.

This is not the first time in either modern or ancient history that the “ordinary” people (which is to say, those without extravagant wealth) have felt that the current political and economic system failed to adequately represent their interests. The watchword over all of these movements is typically “equality.” Translated into today’s political parlance, “equality” as applied by the left means that each of us should have no more, nor no less, than anyone else: either in terms of net financial worth, political influence or social standing. This has been the aim of those hard-core leftists for well over a century. A very succinct statement of their goal is found in John Lennon’s Imagine:

Imagine no possessionsI wonder if you canNo need for greed or hungerA brotherhood of manImagine all the people sharing all the world

The simple beauty of the position is, quite frankly, you need to be a heartless bastard to be against the idea of ending hunger, homelessness, hopelessness, and all the other downsides to the human existence.

This is the trap that libertarians and conservatives alike have fallen into: by allowing liberals and progressives to dictate that they (and their discredited systems) are for ending those inequities, we’ve become the faction that cheers them. Ironic, really – we’re the group that decries repression, yet in popular mythology we’re responsible for oppression. This isn’t our generation’s fault – the shift in public attitudes began late in the 19th century – but it is up to those of us alive now to begin the return to understanding the difference between equality and inequity.

The Fall of the Berlin Wall on November 10, 1989 marked the end of the Soviet Empire, but unfortunately not the end of Marxism. That discredited political theory, with its misbegotten idea of equal outcomes for everyone regardless of ability or talent, continues to infest the minds of progressives the world over.

The time has never been more critical than now for those who know the difference to remind the world that there is no way to guarantee equal outcomes without destroying society. The world imagined by Orwell in 1984, Huxley in Brave New World or Rand in The Fountainhead is closer than we realize. We understand that such an outcome will mean the beginning of a new Dark Age – similar to the one that encroached the Western world after the fall of the Roman Empire and lasted for a millenium. A new Dark Age might not last for untold centuries. Although science and technology would stagnate, the weapons left behind by our civilization have nearly unimaginable destructive power. Unchecked by a societal desire to learn and advance, those weapons will be left under the control of despots – leaders who will have both the will and the means to use them.

These are serious matters and engaging the public in a way that leads them to understand that liberty does not necessarily mean personal gain is the lynchpin to preventing the general collapse of society. The modern liberal probably does not realize the grave danger they, and their political and economic philosophy, pose to civilization. Most sincerely believe that not only are all men created equal, but that must necessarily also mean all men are entitled equally. I won’t go into the reasons we know this is a fallacious argument: that while we may be born with equal rights, we aren’t all born with the same drive, determination, talents and skills. Or that success is defined in different ways by different people (which, on its very face would make defining equality impossible).

Rather, let’s focus on how we win back the conversation. To do so, we need to understand why there is a sort of magnetic pull for the liberal argument of a guaranteed outcome. Why claptrap like Piketty’s Capital in the 21st Century and former SCOTUS Justice Stevens’ Six Amendments are heralded as the intellectual tomes of our age. And why Marx’s Das Kapital is still revered on campuses.

The answer lies in the fundamental fact that libertarians were not forceful enough in the days after September 11, 2001 – and the conservatives, always the stronger political force on the right acquiesced too readily to the neo-conservative ideology. It began what has become a nearly two decade long descent into the twin hells of restricted liberty at home and hopeless intervention overseas. And still today, there is strong pull on the right that insists on doubling down on those failed policies – the entire failed concept of government it represents. It is not truly conservative in nature; it is a belief that government can hold the solutions to our problems, if only properly applied. The philosophy espoused by these devotees gave us the bloated federal government and 12+ years of continuous warfare we live with today. The drain on the treasury, the reapplication of resources away from private investment and the crush of new regulations directly led to the financial collapse of 2008 and the lessening of American influence. In the six years since, the application of liberal political theory by the current administration has had the exact effect anyone with a quarter-brain predicted: continued economic decline and lack of economic security for most of countrymen.

This is where we need to make our case to restore the American Dream. To many of our fellows, the American Dream is dead. Many of our youth do not see an America where they an achieve based on skills or merit, but only one where the determining factors to economic or professional success are cronyism and discrimination. It is in this environment that otherwise insane arguments such as punitive taxation and retributory discernment gain credence. Equally concerning is that the same social powers now see the entire notion of personal responsibility as a quaint relic of past centuries. After all, they tell us, your failures aren’t your failures – they are the result of a system that’s rigged against you.

Modern Cuba is a society where the equality argument has come to fruition. Everyone (except for those in the upper echelons of government) is equal: equally miserable.

I read and hear politicians and scribes on both sides of the political aisle lamenting the pessimistic attitude that permeates our civil life. Yet they fail to understand that the reason for that attitude lies not with the ineffectiveness of their treasured government programs, but rather with the very existence of those programs. You can’t tell a man that he’s deserving of everything that everyone else has, regardless of his means to pay for those things, maintain those things or even comprehend the value of those things without being able to deliver on the promise. That’s where every redistributive model falls flat: it is impossible to give everyone everything. That is the great inequity of the liberal equality argument – it leads people to believe in something that is non-existent. It holds the ultimate societal good, as that which is unattainable.

The results of this drivel can already be seen and felt in our political discourse, in the palpable anger being stoked by the leftists. As our President and his party continue to pit the factions (rich vs. poor, black vs. white, welfare recipient vs. working) against one another, the nation becomes further fractured.

The conservative movement forged by the likes of Buckley and Goldwater reached its zenith with the election of Ronald Reagan to the Presidency in 1980. Do not believe the liberal rewrite of history that is taking place now. Reagan did not win by dividing the nation into rival factions, by demonizing certain groups or by scaring the pajamas off the American people (that happens to be the “progressive” playbook, as written by Lenin, fine-tuned by Alinsky and run to perfection by Obama). Reagan, rather, was an affirmative candidate and President. “Morning in America” wasn’t just a campaign theme, it was the way he governed and the way he presented the idea of America, not only to Americans but to the world. He could do that, because the conservative movement he led was not led by the neo-cons who later come to dominate the right, but one founded on the idea that in order for a man to succeed (however he might define success), in order for him to have the best chance at utilizing his God-given equality of opportunity, was the same idea that founded the nation in the beginning. The idea that not only Christian Conservatives but Libertarians could unite behind.

That is the same message that conservatives and libertarians need to unite behind now, if we are to save our country and the principles it was founded upon. That a man cannot be equal to another without opportunity, and that opportunity does not come from government. Opportunity comes from freedom, from liberty and from our Creator. We need to forcefully, continuously and repeatedly deliver that message. We must remind the American people and the world that men are not slaves to their government, the government is their slave. Many of us remember the famous line from Reagan’s 1981 Inaugural Address, “government is not the solution to our problem; government is the problem.” But perhaps more important to our present circumstance is this passage from the same speech:

“America must win this war. Therefore I will work, I will save, I will sacrifice, I will endure, I will fight cheerfully and do my utmost, as if the issue of the whole struggle depended on me alone.”

Many of the same problems we faced at the dawn of the 1980’s we now face 35 years later, and for many of the same reasons. Let us dedicate ourselves now, my friends, as the conservatives a generation ago did. Let us be the shining beacon the the hill for both our Nation and the World.

Last night President Obama delivered his constitutionally-mandated State of the Union address. It was, of course, little more than the official start of his re-election campaign. Still, the 65 minutes he spent in the House well delivered more than a few interesting tidbits. I thought we could have some fun digging into the speech‘s rhetoric and laying bare the facts.

Obama: “We have subsidized oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising.”

This is the third SOTU address in which he floated the idea of ending oil subsidies. It’s also going to be the third time this falls on deaf ears. He couldn’t get this passed in 2009, when his party controlled the House and had a filibuster-proof majority in the Senate – and that was with a specific legislation calling for $36.5 billion in energy taxes over ten years. The administration never followed up a similar proposal in last year’s SOTU with draft legislation. It seems equally doubtful that a candidate who received nearly $3 million in campaign donations from the oil industry (thus far) is in any rush to see this put into law. Further, we’ve seen the results of the investment in “green energy” companies like Solyndra. In blackjack, that’s the equivalent of “doubling-down” on a 9 when the dealer is showing an ace.

Obama: “Our health care law relies on a reformed private market, not a government program.”

Perhaps the President needs to go back and re-read that health care law. First of all, the reform relies primarily on an individual mandate, enforced through the IRS. If that enforcement doesn’t qualify as the biggest government program in history, then obviously I’m not as good a student of our nation’s history as I thought. And there are other, already existing programs that will be greatly expanded should the Supreme Court not throw the whole thing out this summer. For instance, Medicaid grows to cover anyone up to 138% of the official poverty line, which the CBO scored as requiring a funding increase of $434 billion per year. In and of itself, that would make Medicaid the single largest line item in the federal budget – and most state budgets, too.

Obama: “Take the money we’re no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home.”

This is a wonderful assertion, except that it ignores the reality of the federal budget. The Iraq campaign was financed entirely on debt. Ending that war doesn’t actually result in any savings, except in the strange and convoluted world of Washington finance. It just means we’re able to borrow less money and keep everything else funded at the same levels. Of course, the President largely ignored the problem of the federal debt, so I suppose he thinks keeping deficits at staggeringly high levels in order to score a few rhetorical points is money well spent.

Obama: “Through the power of our diplomacy a world that was once divided about how to deal with Iran’s nuclear program now stands as one.”

I’m not sure which world he meant by this, but it obviously wasn’t this one. Yes, the European Union seems likely to join the US in applying stringent sanctions. But Russia and China have no intention of doing so, and both countries used their veto power in the UN to prevent that body from enforcing them. Besides, the sanctions will have limited effect on the Iranian economy, since the Iranians switched from accepting dollars and euros to rials or rubles. Just for good measure, Israel seems hell-bent on taking unilateral military action if they deem it necessary. It’s hardly the unified front the President presented.

Obama: “The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home.”

Apparently, the President failed to read his latest NIE. In that document, the Taliban is expected to gain strength by using the ongoing talks to re-establish their legitimacy in the Afghani countryside while stalling until we pull out. This assertion is as hollow as LBJ’s that “the Government of South Vietnam has grown steadily stronger.” Of course, we all know well that turned out.

An overarching theme last night was the idea of economic “fairness.” As described by Mr. Obama, fairness is “an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules.” Yet, at no point did he actually outline how to make that a possibility. He suggested that millionaires aren’t paying their fair share of income taxes – yet according to the IRS the effective rate for those people is 26.5%. Only 10% of people making under $100,000 per year are paying a higher effective rate – and less than 5% of millionaires pay a lower rate. Thanks to that disparity, millionaires accounted for 36.5% of the federal government’s income. Unfair? You bet it is – but I doubt asking the 47% of Americans whose effective tax rate is negative to pony up is what the President had in mind when talking about “fairness.”

Finally, one thing was ominously missing from the speech: any discussion of individual freedom and liberty. The entire speech was a discussion of increasing the role and prominence of the federal government in our lives. “With or without this Congress, I will keep taking actions that help the economy grow,” declared the Mr. Obama. Quite frankly, I can’t think of a scarier statement by any President in our recent history. Putting aside the obvious constitutional questions raised by a President acting unilaterally, consider that some 13 million more Americans are looking for work since he assumed office and real GDP growth (accounting for inflation) is -7.3% over the same period, I don’t want this President touching the economy. Especially when he has demonstrated an incredible desire to amass power in the West Wing and during an election year.